Britain's financial regulator has 24 active probes into cryptocurrency operations, according to records obtained through a Freedom of Information request and reported by the Financial Times. The Finan
Britain's financial regulator has 24 active probes into cryptocurrency operations, according to records obtained through a Freedom of Information request and reported by the Financial Times. The Financial Conduct Authority also disclosed receiving seven whistleblower complaints about digital asset firms during the first part of 2018.
The FCA is examining whether the 24 unauthorized crypto businesses conduct activities that fall under the regulator's purview. "If we conclude that they are, then we may investigate and take action, identifying and determining the most serious matters which pose the greatest risk to consumers," the regulator stated.
Across the Atlantic, the U.S. Department of Justice has initiated a criminal inquiry into possible market manipulation in bitcoin and other digital currencies. Bloomberg's reporting indicates prosecutors are examining spoofing—where traders submit phony orders to create false impressions of demand—and wash trading, in which a single trader buys and sells to themselves to trigger buying pressure from other market participants. The CFTC, which regulates cryptocurrency derivatives, is collaborating with the DoJ on the investigation.
Authorities are intensifying enforcement as bitcoin experiences volatile price movements, regulators debate how to oversee crypto markets, and investors pour money into questionable initial coin offerings that disappoint them. To illustrate the dangers, the SEC unveiled a dummy ICO platform called HoweyCoins.com that walks investors through common red flags.
Bitcoin fell to $7,482 this week, down 8.43 percent and below $7,500. Technical traders watch a key level: the price may breach the 50-week moving average by week's end.
Michael Baker, crypto analyst at ETX Capital, sees a critical juncture between buyers and sellers. "This is a significant development for bitcoin, we have only seen a few weeks over the last year where the price has dropped below the 50-week SMA," he said. "Sustained holds and moves further away from $7.6k will no doubt put the jitters in the bitcoin bulls."
